Before Mr Berry’s announcement, doubts had been raised over future investment in northern transport links after the Department for Transport cancelled a host of electrification projects, including between Hull and Selby, and also between Manchester and Leeds.

City business leaders followed up the HS3 announcement with further lobbying at a transport summit, attended by leading figures in local government and beyond, in Leeds yesterday.

Dr Ian Kelly, chief executive of the Hull and Humber Chamber of Commerce, told peers during his speech that they should be lobbying for HS3 to take “priority” over other rail schemes – including the south-to-north HS2 line.

Hull's Paragon Interchange could be the starting point of the new HS3 rail line.

HS2 – a high-speed line which will first shorten the journey time from London to Birmingham, and eventually see new track laid all the way up to Manchester and Leeds – has already been approved by Parliament, and is estimated to cost £56bn. Construction work is due to commence this weekend.

But Dr Kelly said HS3 – which would provide a direct non-stop service between Hull, Sheffield, Leeds, Manchester and Liverpool – was more important than HS2 for “rebalancing” the economy.

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“What I was highlighting in my speech was that – in our view – HS3, at an estimated cost of £7bn, is much less controversial than HS2, which is estimated at costing between £60bn to £100bn, depending on who you listen to,” said Dr Kelly.

“HS3 has consensus compared to the cries of anger heard when HS2 was given the nod.

“Our points were that HS3 should be given the highest priority given it is much cheaper, there is consensus already and it would go some way to rebalancing the economy.”

MPs Karl Turner and Diana Johnson both signed a letter demanding fresh investment into transport links in the Humber

The chamber boss argued that, given recent transport investments into London’s infrastructure, it was time to fast track HS3 plans.

“London has had Crossrail [costing £15bn] and so we feel HS3 should be an even higher priority than HS2,” said Dr Kelly.

“We are not saying HS2 should not happen but that HS3 should be a top priority now.

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“HS2 could be finished a few years later than originally timetabled without it being the end of the world.”

The call from the business sector was matched by city politicians, who joined a contingent of northern Labour Party MPs who have written to Transport Chris Grayling demanding action.

Both Shadow Transport Minister Karl Turner, MP for Hull East, and Hull North MP Diana Johnson signed the letter, which demanded “no more broken promises” over transport investment in the region.

Chris Grayling MP, Secretary of State for Transport (Image: Jon kent)

They called on him to match Labour’s promise of a “Crossrail for the North” – an east-to-west line similar in concept to HS3.

The MPs referred to the “disparity” of funding across the UK, quoting research from IPPR North which found that transport spending in Yorkshire and the Humber amounted to £190 per person, compared with £1,943 per head in London.

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They wrote: “Mr Grayling, we need no more delays. No more broken promises. No more warm words.

“Give us the investment, give us devolution, empower the north and we will deliver transport fit for the 21st century.”

At the transport summit, Manchester Mayor Andy Burnham and Lord Jim O’Neil, the former Northern Powerhouse ambassador to the Prime Minister, urged northern leaders to “lobby quickly” to ensure the design and engineering of HS3 plans best served the region.